Comments on: Credit Companies Want You To Fail! http://www.istudioweb.com/credit-companies-want-you-to-fail-2009-04-20/ Marketing, Promotion and Web Design for Small Business in US Wed, 07 Sep 2011 11:41:18 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Zealus http://www.istudioweb.com/credit-companies-want-you-to-fail-2009-04-20/comment-page-1/#comment-786 Zealus Sat, 25 Apr 2009 02:01:00 +0000 http://www.istudioweb.com/?p=612#comment-786 Ed, you're absolutely right about credit card companies being on the hook. The problem, the way I see it, is that "a few bucks" as you put it could be plenty of money for someone else. Think of it as of a bargain - if I were to offer you to sell your credit score(!) - how much would it worth to you? How much would it worth for someone who's in the different situation than you - barely making it from check to check because of credit card burden? For those people (and I am not making a judgment here, just pure math, freeing up cash is much more important than the credit score which aren't really putting their bread on their table, because cash does. Ed,
you’re absolutely right about credit card companies being on the hook. The problem, the way I see it, is that “a few bucks” as you put it could be plenty of money for someone else. Think of it as of a bargain – if I were to offer you to sell your credit score(!) – how much would it worth to you? How much would it worth for someone who’s in the different situation than you – barely making it from check to check because of credit card burden? For those people (and I am not making a judgment here, just pure math, freeing up cash is much more important than the credit score which aren’t really putting their bread on their table, because cash does.

]]> By: Ed Truck http://www.istudioweb.com/credit-companies-want-you-to-fail-2009-04-20/comment-page-1/#comment-785 Ed Truck Sat, 25 Apr 2009 01:31:29 +0000 http://www.istudioweb.com/?p=612#comment-785 Credit companies do it to reduce liquidity constraints. They are potentially on the hook for everybody's credit line, at least for a short while. Think cashflow instead of asset/liability. Customers will respond because not everybody wants to destroy their credit for a few bucks. Credit companies do it to reduce liquidity constraints. They are potentially on the hook for everybody’s credit line, at least for a short while. Think cashflow instead of asset/liability.

Customers will respond because not everybody wants to destroy their credit for a few bucks.

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